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Economics 3.3.3 Test

Enter the letter for the matching Definition
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1.
Experience curves
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2.
MES is likely to be low or high relative to the size of market demand in a highly competitive industry?
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3.
3 causes of an industry having a high MES
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4.
MES is likely to be low or high relative to the size of market demand in a natural monopoly?
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5.
Increasing returns to scale
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6.
Examples of internal economies of scale
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7.
Constant returns to scale
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8.
Main benefits of economies of scale
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9.
Examples of external economies of scale
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10.
Possible disadvantages to consumers from economies of scale
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11.
External economies of scale
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12.
What do risk-bearing economies arise from?
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13.
Capital-labour substitution
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14.
Potential benefits to consumers from businesses utilising economies of scale
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15.
Examples of markets with low MES
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16.
Effect of external economies of scale
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17.
Technical economies of scale
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18.
Decreasing returns to scale
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19.
Consequences of diseconomies of scale
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20.
Internal economies of scale
A.
technical economies, purchasing economies, managerial economies, financial economies, risk-bearing economies, network economies
B.
rise in LRAC, expansion beyond optimum size and lost productive efficiency, reduced profits
C.
uni research departments, transport networks lower logistics costs, relocation of suppliers to centre of production, influx of human capital
D.
product diversification and market diversification
E.
when the % change in output < % change in inputs
F.
when the % change in output > % change in inputs
G.
higher real incomes and consumer surplus, improvements in dynamic efficiency, higher real wages(employees), benefits from network externalities(better access)
H.
when the %  change in output  = % change in inputs
I.
changes outside the business
J.
question the extent to which EoS leads to lower prices, reinforce market power, environmental consequences, price isn’t only metric to measure consumer welfare
K.
Replacing workers with machines in a bid to increase productivity and reduce the unit cost of production
L.
high so industry will be highly concentrated
M.
the more experience a business has in producing a particular product, the lower its costs
N.
gains in productivity/efficiency from scaling up long-run production
O.
cafes, coffee shops, hotels, dry cleaners
P.
low so there is room for many businesses to compete
Q.
large fixed costs of setting up production (e.g. pharmaceuticals), low marginal cost of supplying to extra customers compared to fixed costs, LRAC falls in a natural monopoly so only one business can exploit EoS
R.
lower LRAC, increased profits, positive impacts on share price, retained profits, larger business scale
S.
when a company cuts costs internally, so they're unique to that particular firm
T.
expansion of entire industry cause lowering unit costs
Type the Definition that corresponds to the displayed Term.
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21.
MES
Type the Term that corresponds to the displayed Definition.
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22.
scale of production where all the internal economies of scale have been fully exploited
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23.
the proportionality of changes in output after the amounts of all inputs in production have been changed by the same factor
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24.
lowest point on a firm’s LRAC where average cost meets marginal cost
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25.
increases in the unit cost of supply in the long run due to decreasing returns to scale
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26.
buying raw materials in bulk and getting discounts from suppliers
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27.
networks of suppliers / customers with a low marginal cost of adding users
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28.
unit cost advantages from expanding the scale of production in the long run
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29.
all factors of production are variable and the scale of production can change in the long run
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30.
dictates that every container should address a single concern and do it well.

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